Beyond yield: Is a company’s dividend sustainable?

In a world where inflation is high and investors can get 5% for government bonds, there is no free lunch. Investors today must look at what an income stock is differently than they have before. There are now many different angles to income, says Artemis. When clients are looking at the sustainability of dividends, they should be looking at cash flow first and dividends second. We like businesses that can influence their own destiny and can differentiate; that is one way to give some certainty around dividend stream and growth, irrespective of what is going on in the macro world, says Artemis...